'India has potential to meet Vietnam's cotton demand'

Vietnam's domestic production of the crop met only one per cent of local demand and over 500,000 tonnes of cotton is required to satisfy the needs of garment and textile manufacturers in the country, Duy Khuong said, according to Vietnamese media reports.

India produces enough cotton to export to Vietnam, he further added.

The Indian government provided a $300 million line of credit to Vietnam to boost textile trade and investments between both countries during Prime Minister Nguyen Tan Dung's visit in October last year.

Vishvajit Sahay, joint secretary of the Department of Heavy Industry, under Indian Ministry of Heavy Industries and Public Enterprises said that through the conference, the Indian side had productive discussion about the operation of the line of credit with Vietnamese agencies and enterprises in the future.

Vietnam's apparel industry is growing rapidly. With an export grow rate of 20 per cent each year, Vietnam is expected to generate a turnover of $40 billion in 2020. The recently signed Trans-Pacific Partnership will attract investment worth millions in the textile industry of Vietnam thereby increasing the demand for cotton.

In 2014, the bilateral trade between the two countries was $5.59 billion, showing a significant increase of 9.84 per cent compared to 2013. This year from January to July the total trade between India and Vietnam reached over $3 billion. (HO)

Fibre2Fashion News Desk – India